RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/143/Rev.1 
21 January 2005 
 
 (05-0267) 
Trade Policy Review Body Original:  English 
  
 
   
 
TRADE POLICY REVIEW 
 
Report by 
 
SIERRA LEONE 
 
Revision 
 
   
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Sierra Leone is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Sierra Leone. Sierra Leone WT/TPR/G/143/Rev.1 
 Page 3 
 
 
CONTENTS 
    P a g e  
Introduction   5 
 1. Economic Performance and Outlook 5 
  1.1 General Macroeconomic Environment 6 
  1.2 Public Finances 7   1.3 Sector Analysis 9 
  1.4 Privatisation Process 11 
2. Trade Environment 11 
  2.1 Current Trade Position 11 
  2.2  Trade Policy 14 
  2.3 Legislative Reform 15   2.4  Regional Reform 15 
3. Investment and Private Sector Development 15 
  3.1 Private Sector Development 15   3.2 Investment Promotion Act 16 
4. Sierra Leone and the World Trade Organization 17 
  4.1 Implementation of WTO Agreements 18 
  4.2 Sierra Leone's position regarding the Doha Round of Negotiations 19 
  4.3 Notifications 20   4.4 Needs Assessment for Trade Policy Framework 20 
5. Future Direction of Trade Policies 20 
 
 Sierra Leone WT/TPR/G/143/Rev.1 
 Page 5 
 
 
Introduction 
1. Sierra Leone has progressed considerably since th e end of the civil war that devastated the 
economic, social, and physical infrastructure with in the country. Since January 2002 when peace was 
restored, the Government of Sierra Leone has worked tirelessly to consolidate peace throughout the 
country.  The security sector is coordinated by the Office of National Security (ONS) and consists of 
the Sierra Leone Police (SLP) and Republic of Sierra Leone Armed Forces (RSLAF) which are 
supported by the United Nations Mission in Sierra Leone (UNAMSIL) and the International Military 
Advisory and Training Team (IMATT).  See Appendix A. 
2. Sierra Leone’s development policy, set out in  the National Recovery Strategy (NRS), is 
captured in VISION 2025 with the view of a “U nited People, Progressive Nation, Attractive 
Country”.  Sierra Leone’s economic outlook since 2002 has improved significantly. Economic growth 
has been built upon the strong foundations put in  place by the completion of the disarmament and 
demobilization programme, the peaceful election and the resettlement of Internally Displaced Persons (IDP).  There is now the free movement of goods  and services throughout Sierra Leone, which has 
resulted in linking previously isolated internal ma rkets.  The effect is greatly improved resource 
allocation, beneficial developmen t and growth opportunities.  Nevert heless, in 2004 Sierra Leone was 
ranked last in the United Nati ons Human Development Index
1 for the third year in a row.  
3. In the 1990’s, despite macroeconomic reform s and support from development partners the 
economy contracted by 4.6% annually. In 2003 GDP growth was 9.4%.  Growth for 2004 is expected to be 7.4% and is projected to remain robust at  6.0-7.0% through to 2007. The Poverty Reduction 
Strategy Paper for Sierra Leone is expected to be finalised early 2005 and builds on the I-PRSP and 
the NRS and fully commits Sierra Leone to pove rty alleviation and the Millennium Development 
Goals, which are to be attained under sustained economic growth. 
4. A key feature of the government’s efforts to in crease and sustain growth rates is through the 
establishment of a liberalised trade regime, which now  exists in Sierra Leone.  A fundamental aspect 
of this is private sector development, which rec ognises the government’s role in creating an enabling 
environment for business.  The recently enacted I nvestment Promotion Act 2004 will greatly improve 
the environment for the private sector in Sierra Leone, as will the planned legislative reform to 
support further liberalised trade. Moreover, the priv atisation and divestiture of public enterprises is 
underway, with 24 enterprises considered under th e second phase of the privatisation programme 
which is due to be completed in December 2006. 
5. In 2000, the Anti-Corruption Commission (ACC) w as established to eradicate corruption in 
the public and private sectors. The Government of Sierra Leone maintains a zero tolerance approach 
to corruption. 
1. Economic Performance and Outlook 
6. Sierra Leone is a small open economy that has suffered prolonged deterioration, principally 
due to the decade long civil war, and an accompanyi ng low standard of living despite its significant 
resource endowments.  Hence the economy is largely transitional.  At present, the economy is 
characterised by narrow production and export bases,  poor human resource development and chronic 
structural rigidities. 
7. The general economic policy is to promote a stable macroeconomy, thus ensuring an 
economic recovery and reversing th e trend of economic decline caused by the poor security situation.  
                                                      
1 UNDP (2004), Human Development Report.   WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 6 
 
 
The main objectives of the macroeconomic framework have been to significantly reduce and maintain 
a low inflation rate, while allowing for the recove ry of economic activity and accumulation of gross 
external reserves. In maintaining a stable macr oeconomic environment, poverty reduction and long-
term development issues are the government’s priorities.  
8. The National Recovery Strategy (NRS) has been used in parallel with the I-PRSP, with four 
priority areas of intervention: restoration of St ate authority; rebuilding communities; peace-building 
and human rights; and the restoration of the economy2.  In 2001 Sierra Leone prepared an Interim 
Poverty Reduction Strategy Paper (I-PRSP) and the full PRSP is expected at the end of 2004.  The 
PRSP builds upon the foundations laid in the I-PRSP a nd the NRS and is a holistic approach that will 
provide the framework for domestic policies and programmes that will reduce poverty in Sierra 
Leone. 
1.1. General Macroeconomic Environment 
9. Macroeconomic stability has been maintained wh ile the peace process consolidated.  In 2003, 
real Gross Domestic Product (GDP) growth was 9.4% .  It is expected to drop to 7.4% in 2004.  
Projections3 for 2005 to 2007 expect that real GDP growth continues to increase by 6-7%. Growth 
was generated in the recovery of activity in th e agricultural sector, expansion in diamond production, 
modest growth in manufactur ing output and construction. 
10. The Government is committed to maintaining pr ice stability so that the country will benefit 
from a stable and competitive exchange rate and furt her cuts in nominal interest rates. However, the 
annual inflation average has increased in the past coupl e of years. From an inflation rate of 34.1% in 
1999 at the height of the rebel war, Sierra Leone we nt through a period of negative inflation in 2001  
(-3.2%).  The depreciation of the Leone to the dollar a nd the increase in the cost of fuel were the basis 
of the inflation increase of 7.6% in 2003.  It is projected that continued fuel price increases, an 
expansionary monetary policy (partly owing to de lays in donor support) and a depreciation of the 
exchange rate will increase inflation to 13.6% in 2004.  Inflation is pr ojected to average 8.5% in 2005, 
6% in 2006 and 5% in 2007. 
11. The exchange rate regime is determined by the market based on weekly foreign exchange 
auctions conducted by the Bank of Sierra Leone.  The spread between the official and parallel market 
exchange rates remained stable within a range of 8- 9.0% in 2003.  In the medium term, an interbank 
system of exchange rate determination is expected. In terest rates were stable for the first nine months 
of the year but rising inflation and a constant nominal rate caused a decline in the real interest rate.  
The real interest rate at the end of 2003 was 8.9%. The main instruments used by the Bank of Sierra 
Leone for monetary control and domestic liquidity management are the weekly auctions of treasury 
bills and government securities.  The Bank is e xpected to introduce a wider range of securities4 to 
strengthen its monetary operations shortly.  
 
                                                      
2 Programmes under the National Recovery Strategy in cluded: increase in the number of police officers, 
rehabilitating schools, health cen tres, roads and prisons, appointing Justices of the Peace, repatriation and resettlement of 
IDPs, reintegrating ex-combatants, impr oving access to safe drinking water and sa nitation, and setting benchmarks for 
priority food and cash crops. 
3 Draft PRSP (2004) 
 4 Securities repurchase agreements (repos) and a demateri alized form of government secu rities are to be introduced 
before the end of 2004.  An electronic book entry system, Cleari ng House and an efficient payments system are also to be 
established.  
 Sierra Leone WT/TPR/G/143/Rev.1 
 Page 7 
 
 
1.2. Public Finance 
12. The maintenance of strict fiscal discipline is the prime focus of fiscal policy in the medium 
term.  Fiscal policy is driven by measures to ra tionalize the tax system and strengthen control over 
spending while reorienting expenditures towards poverty reduction.   Revenue enhancement, 
improved expenditure management and control sy stems, and phasing out of bank financed budget 
deficit will contribute to con tinued macroeconomic stability. 
13. Domestic revenue in 2004 increased to an exp ected Le354.4 billion (equi valent to 12.4% of 
GDP) from Le283.7 billion in 2003.  Domestic reve nue as a percentage of GDP is expected to 
increase  to 13.0% of GDP in 2005, 14.6% in  2006 and 15.7% in 2007.  Grants were estimated at 
Le274.7 billion in 2004 (equivalent to  9.6% of GDP) and are expected to fall to 7.1% of GDP in 
2007.. Total expenditure and net le nding for 2004 is estimated at Le737.7 billion, equivalent to 25.8% 
of GDP, of which Le173.8 billion (6.1% of GDP)  is  for wages and salaries and Le189.8 billion (6.6% 
of GDP) is for goods and services.  Development expenditure is estimated to be Le196.6 billion 
(equivalent to 6.9% of GDP), this is projected to rise to 10% of GDP in 2005. 
14. In 2004,  the overall deficit, excluding grants, was Le383.3 billion or 13.4% of GDP, this 
decreased from 19.7% of GDP in 2003 and is expected to decline further by 5.7% of GDP in 2007. 
The overall deficit, including grants, was Le108.6 bil lion or 3.8% of GDP. Gross foreign reserves of 
the Bank of Sierra Leone were at the equivalent of 2.0 months of import at the end of 2004.  At the 
end of 2003 and 2002 there was the equivalent of 1. 5 and 2.4 months of import cover respectively.  
By 2007 the reserves are due to rise to the equivale nt of at least three months of import cover. 
15. At the end of 2003 the total debt owed to offici al bilateral creditors was US$437.6 million, of 
which US$373.0 was due to Paris Club creditors. The debt service burden was reduced as the Government signed various debt -rescheduling accords.  Validated commercial, short-term, and 
military debt amounted to US$253.3 million.  Si erra Leone reached the decision point under the 
enhanced Highly Indebted Poor Countries (HIPC) In itiative in 2002.   Figure 1.1 shows the Debt to 
GDP ratio for the period 1995 to 2005 (2004 and 2005 estimates).  The high over this period was in 
1996 where the ratio was 119.6%.  The ratio has been falling since 1998 and is currently 86.2% 
(2003), this is expected to be further reduced to 73.2% in 2005. 
 
  
 
    
 
     
 
 WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 8 
 
 
020406080100120140
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005Figure 1.1:  Debt to GDP Ratio, 1995 to 2005
Source :  Ministry of Finance, Economic Bulletin. 
16. The National Revenue Authority (NRA) has b een recently established as an autonomous body 
whose principal goal is to increase national revenue collection on a sustainable basis.  There are three 
main revenue-generating authorities; the Income Tax Department; the Customs and Excise 
Department; and the Gold and Diamond Department.  The Customs Department of the NRA will soon 
adopt a work plan for the introduction of the WTO valuation rules, including a study of the revenue implications, legislative and training needs, and detailed valuation instruc tions.  Customs valuation 
procedures will be reviewed and the Automated Sy stem for Customs Data Management (ASYCUDA) 
will be established. In an attempt to widen the tax base the government will introduce a Value-Added 
Tax (VAT) by June 2007. 
17. The Medium Term Expenditure Framework (M TEF) budget and Public Expenditure Tracking 
Survey (PETS) are in place and the new Govern ment Budgeting and Accountability Act will improve 
the effectiveness and governance of the budget process
5. Public expenditures are to be re-orientated in 
favour of development expenditure and items such as security, soci al services, infrastructure and 
economic activities thus creating an attractive climat e for investment, job creation and to improve the 
quality of life of citizens of Sierra Leone. 
 
                                                      
5 The Government Budgeting and Accountab ility Act, 2004 was gazetted on the 19th August 2004 Sierra Leone WT/TPR/G/143/Rev.1 
 Page 9 
 
 
Figure 1.2:  Domestic Revenue, 2004
Income Tax
Customs and ExciseRoad User 
Charges
Mines DepartmentOther (e.g. Fisheries Royalties, Parastatals)
Source :     Ministry of Finance (2004b).
 
 
051015202530
Security Education Health Good Governance Agriculture Infrastructure
Source :   Draft PRSP (2004).PercentageFigure 1.3:  Priority Sectors for Expenditure, 1999, 2000 and 2004
1999 2004 2000
 WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 10 
 
 
1.3. Sector Analysis 
18. The key economic sectors in Sierra Leone are the agricultural and mining sectors.  
Manufacturing plays a minimal role. In terms of ove rall employment the government is the largest 
employer, employing up to 30% of the labour force. 
1.3.1. Agriculture 
19. At present agriculture accounts for around 60-70% of total employment but generates a share 
of only about 10% to 50% of the GDP.  Crop produc tion is mainly at subsis tence level and over 60% 
of production does not reach the monetised market. 60% of the population has smallholdings of less 
than 2 hectares per farm family and 75% of the popul ation has a farm of less than 3 hectares. The low 
level of food production, exacerbate d by the civil conflict continues to be below self-sufficiency.  The 
government has a strategy for the attainment of food security for the entire population by 2007.  The continued decline in agricultural outputs has impact ed negatively on food prices and real incomes.  
The costs of basic food items rose more than f our fold between 1991 and 2002.  The critical food 
supply situation has further impoverished vulnera ble groups, especially the rural poor, low income 
urban families and small scale farmers. 
20. Cereals production in Sierra Leone constitut es only 37% (excluding imports) of the annual 
national requirement
6 of cereal consumption. If imports are included then 63% of the requirement is 
met. Some improvements in crop production have occurred since th e devastating reductions during 
the war.  The recovery in food production is partly du e to the fact that returnees have resumed farming 
activities in their resettled communities.  Crops such  as cassava, sweet potato and groundnuts are also 
recovering after the massive decreases in production during the civil conflict. Despite this the most 
important food crop, rice, was below the pre-war level in 2002/3.  
21. Total agricultural exports have increased fro m US$ 0.31 million in 2001 to US$ 2.66 million 
in 2003.  The major agricultural exports are coffe e and cocoa.  Coffee rose from US$ 0.2 million to 
US$ 0.4 million and cocoa from US$ 0.27 million to  US$ 2.59 million.  The other exports include 
piassava and ginger but their export levels are minimal to date.  
 
                                                      
6 FAO/MAFFS (2003), the requirement is  estimated at 626,704 tonnes of cereals.  This is calculated based on a per 
capita consumption of 104 kg of cereals a nd an estimated populati on of 5.24 million. Sierra Leone WT/TPR/G/143/Rev.1 
 Page 11 
 
 
0100200300400500600
1990 1999 2000 2001 2002Source :   FAO/MAFFS (2003).Estimated Production (MT)Figure 1.4:  Estimated Production of Food Crops, 1990, 1999-2002
Rice Millet Maize Sorghum Cassava Sweet Potatoes Groundnut
 
 
1.3.2. Mining 
22. Diamond exports have increased substantially since 2000.  In 2001, diamond production was 
224.3 thousand carats; this increased to 351.9 thousand carats in 2002, to 506.8 thousand carats in 
2003 and to 691.8 thousand carats in 2004.  The to tal value of diamond exports, to the end of 
December 2004 , was US$125,652,634.26. However, th e rutile and bauxite mines are yet to restart 
operations. The total revenue7 received by the government for diamond exports, up to the 22nd 
September 2004 was US$ 3,214,393. Sierra Leone w as among the first fifty countries that embraced 
and implemented the Kimberly Process Certification Scheme on 1st January 2003. 
1.3.3. Manufacturing  
23. The manufacturing sector is still recovering sin ce the war and in the last few years has had 
mixed results.  The manufacturing base is still narro w with a concentration on a few commodities, 
namely: beverages, plastics, paints and cement.  
1.4. Privatisation Process 
24. The National Commission for Privatisation (NCP) is implementing the second phase of the 
country’s privatisation programme.  This covers 24 enterprises and is to conclude at the end of 
December 2006. The total financial cost for th is phase is US$ 13 million. The enterprises cover 
utilities, financial institutions, transport and shi pping, agriculture and manufacturing sectors.  These 
                                                      
7 Artisanal mining is subject to 3% export duty while Ki mberlite mining has a 5% royalty fee and 0.5% valuation 
fee. WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 12 
 
 
include the water and electricity utilities and commerc ial banks.  The full register of enterprises is 
listed in Appendix B. 
25. In the early 1990’s there were 44 public enterp rises (defined as a majority and minority state-
owned)  which were engaged in many sectors of the economy.  The 1993 Public Enterprise Reform 
Act divested 14 of these enterprises.  However, th e largest of the enterprises remain under government 
control. As a general rule, non-essential assets will be isolated and sold-off.  Loss-making enterprises 
will be sold outright.  The NCP will institute effi ciency measures for utilities in the short term while 
the legal, organisational, manageri al and financial aspects are being restructured in preparation for 
their sale. Efforts are being made to establish a Stoc k Exchange, which will assist in the privatisation 
efforts. 
2. Trade Environment 
26. The paucity of data is a considerable constraint  on policy formulation and planning in Sierra 
Leone.  The problem is particularly evident with regard to trade statistics.  The development of 
detailed trade statistical collection and analysis is urgently required.  Within Statistics Sierra Leone 
(the lead body for the compilation of general statis tics), the Foreign Trade Statistics section compiles 
data on trade statistics. 
27. The difficulties with trade analysis are complic ated by inconsistent product nomenclatures in 
the customs tariff.  However, the Customs Depart ment of the NRA will soon adopt a work plan for 
the introduction of the WTO valuation rules, including  a study of the revenue implications, legislative 
and training needs, and detailed valuation inst ructions.  Customs valuation procedures will be 
reviewed and the Automated System for Cu stoms Data Management (ASYCUDA) will be 
established. 
2.1. Current Trade Position 
28. Sierra Leone’s trade balance has deteriorated in the past few years in total value and also in 
terms of GDP.  The trade balance has recovered from  minus US$ 153.3 million in 2001 to minus 
US$ 211.3 million in 2003, equivale nt to 11.5% of GDP.  The total value of the trade position has 
increased by 37.8% from 2001 to 2003. Figure 2.1 s hows the trade balance by quarter from 2001 to 
2003.  The steady increase in the trade balance can be  seen until the first quarter of 2003.  The trade 
balance has fallen rapidly since this  point, reversing the trend of the previous quarters and the final 
quarter of 2003 was the lowest quarterly trade balan ce since the first quarter in 2001.  The spike in 
2003 Q1 is principally due to a large increase in the import values of mineral fuels, lubricants and 
manufactured goods. 
29. Merchandise imports have risen steadily si nce 2001, from US$ 182.2 million to US$ 303.7 
million in 2003;  an increase of 66.7%. Since then there has been a decline.  Since 2001 merchandise 
exports have increased in every quarter except tw o.  In 2001, merchandise exports were valued at 
US$ 28.9 million, and they increased by 219.8% to US$ 92.3 million in 2003. 
 Sierra Leone WT/TPR/G/143/Rev.1 
 Page 13 
 
 
-100000-80000-60000-40000-20000020000400006000080000100000120000
Q1  2001 Q2 Q3 Q4 Q1  2002 Q2 Q3 Q4 Q1  2003 Q2 Q3 Q4Figure 2.1:  Trade Balance, by Quarter, 2001 to 2003
Source :   Ministry of Finance (2004a).Thousand of US Dollars
Merchandise Imports Trade Balance Merchandise Exports
 
30. Figure 2.2 shows the breakdown of the value of merchandise imports by sector.  The total 
merchandise imports in mineral fuel and lubricants  is the greatest import, accounting for 25.8% of 
total imports and a value of US$ 78.2 million, this  has increased by 80.9 % since 2001.  The second 
largest imported product is food, which represents 24.5% of the total imports, a value of US$74.5 
million.  Rice accounts for 36.7% of food imports, i.e.  9.0% of the total value of merchandise imports. 
 
 WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 14 
 
 
Figure 2.2:  Merchandise Imports, 2003
Food
24%
Animal and Vegetable Oils
1%
Beverages and Tobacco
4%
Mineral Fuel and Lubricant
25% Crude Materials
2%Machinery and Transport 
Equipment
19%Manufactured Goods
14%Others
11%
Source :     Ministry of Finance (2004a).
 
31. Figure 2.3 shows domestic exports by product for 2003.  The total value of domestic exports 
was US$ 92.3 million in 2003, out of which the va lue of diamond exports was US$ 76.7 million, 
accounting for 91.5% of total domes tic exports.  The value of diamond exports was US$ 98.7 million 
in 2004.8 Export volume has increased, as a result of diamond exports almost doubling during the first 
three months of 2003 compared to the same period in 2002.  Diamond exports have increased rapidly in the first three quarters of 2004. At the same time , there has been a revival in cocoa and coffee crops 
for export;  cocoa rose from 0.34 to 2.75  thousand metric tons and coffee rose from 0.52 to 0.54 
thousand metric tons. Sierra Leone ’s largest import trading partner in 2003 was the European Union, 
closely followed by the ECOWAS region. 
 
  
 
     
 
   
                                                     
 
8 Up to the 22nd September 2004 Sierra Leone WT/TPR/G/143/Rev.1 
 Page 15 
 
 
Figure 2.3:  Domestic Exports, 2003
Coffee
Cocoa
Piassava
Other AgricultureOthers
Source :     Ministry of Finance, Economic Bulletin.
 
2.2 Trade Policy 
32. In developing its comprehensive trade policy,  Sierra Leone will seek a balance between its 
internal needs and its external obligations. Th e main objectives of the policy will  include: 
• Encouragement of a robust and competitive private sector for employment generation and 
wealth creation; 
• Development of value-added chains in the pr oduction of quality products, and in the use of 
raw materials; 
• Development of a vibrant and innovative service sector;  
• Reduction of import dependency and en hancement of foreign exchange  
• Compliance with international agreements including the WTO 
33. The Ministry of Trade, responsible for trad e policy formulation and implementation of WTO 
agreements, is gradually implementing programes to enhance its technical capacity to formulate 
policy and comply with its international obliga tions, through targeted technical assistance from 
development partners. As a start to the process of trad e policy formulation, and in an effort to increase 
policy coordination, a National Coordinating Co mmittee on Trade (NCCT) was established in May 
2004 and has convened four times to  date. Membership consists of senior management personnel 
from line ministries, other agencies of government , academia and the private sector.  The NCCT 
brainstorms on policy issues, ensures active policy coordination, and provides strategic direction on 
negotiation positions in various re gional and international processes. 
    WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 16 
 
 
2.3. Legislative Reform 
34. Legislative reform to support implementation of  trade policy is gradually taking place, under 
the stewardship of the Law Reform Commission. A Partnership Law and a review of the commercial 
use of land have been completed. The Law Refo rm Commission will shortly start work on a company 
law. The Government of Sierra Leone also inte nds to develop policy and laws on competition and 
protection of intellectual property rights.  
35. Administrative reform is well underway with the government committed to focusing on the 
provision of services only where the private sector ca pacity does not exist and to strengthening public 
expenditure management and the capacity for service- delivery. A review of the Senior Civil Service 
and pay structure is also progressing. A new procur ement law, The Public Procurement Act 2004, is 
applicable to all central government ministries,  departments, commissi ons, agencies and local 
authorities and will regulate public procurement of  goods, works, intellectual services, and other 
services 
36. Decentralisation is a key feature of our devel opment programmes, with the Local Government 
Act 2004 devolving powers to the District Councils.  Cent ral to this effort is building the capacity of 
these local government bodies for effective service delivery. 
2.4. Regional Integration 
37. Sierra Leone is a member of two regional  economic groupings: the Economic Community of 
West African States (ECOWAS), and  the Mano Rive r Union (MRU). In addition the country is a 
member of the African Union (AU), and the Ne w Economic Partnership for African Development 
(NEPAD). 
38. Sierra Leone is gradually adjusting its tariffs  towards the agreed Common External Tariff 
(CET) of ECOWAS to achieve tariff harmonization by January  2008. Parlia ment has ratified the 
West African Monetary Zone (WAMZ) and the West African Central Bank (WACB) Statutes.  
Progress in convergence by member countries is accelerating the integration within the second monetary zone and the planned introduction of a single currency by 1
st January 2008.   
39. With the rise of civil conflict in two of the countries of the MRU (Liberia and Sierra Leone), 
little progress has been made in the areas of trade promotion, trade liberalisation and tariff reduction 
or harmonization within the group. However, Sierra  Leone remains committed to the objectives of the 
MRU of lasting peace, freedom and social progress among the three countries.  
40. The government of Sierra Leone views as signi ficant the elaboration of the NEPAD and its 
peer review system within the African Union,  aimed at bringing about economic and governance 
reforms that will foster development and reduce po verty. Sierra Leone remains committed to the 
objectives of the AU and NEPAD and will continue to participate in these efforts within its 
capabilities.  
3. Investment and Private Sector Development 
41. The government is committed to creating an enabling environment for private sector growth 
and competitiveness. 
   Sierra Leone WT/TPR/G/143/Rev.1 
 Page 17 
 
 
3.1 Private Sector Development 
42. The private sector is to assume the lead in  developing the post-war economy with the 
government fully committed to supporting private secto r development (PSD) so that the private sector 
will become the “engine of growth” for Sierra Leone.  A vibrant private sector is critical to economic 
growth, income generation, employment  and ultimately, poverty reduction.  
43. PSD is a key facet of Vision 2025 where a competitive, fast growing and liberal economy led 
by the private sector is envisaged.  The private sect or can substantially assist in building capacity and 
capability of Sierra Leoneans, since we recognise th at poverty eradication is only possible under PSD 
and sustained economic growth 
44. Since 2000 the Government of Sierra Leone has been promoting a policy environment that is 
pro-business, encourages individual efforts and dr ives innovation.  The Government is providing 
support to the development of small and medium sized enterprises through the provision of micro-
finance and reactivating centers for skills training. 
45. The Standards Bureau has been strengthened and Sierra Leone standards are to be exclusively 
based on international standards.  Testing, calibratio n and certification is carried out twice a year and 
this is confirmed subsequently by controlled  in spection to ascertain that the integrity of certified 
instruments is maintained.  All Codes of Practice and standards developed so far are mandatory.  The 
Standards Bureau has been designated as the Na tional Enquiry Point for all matters addressing 
technical barriers to trade, and sanitary and phyto-sanitary measures. 
46. The government encourages the local processing of traditional and non-traditional exports 
such as cotton, coffee, cocoa,  ginger, cashews to create linkages between primary production, 
manufacturing and value-addition to the manufact uring/production process. Support for small and 
medium enterprises is vitally impor tant for such schemes.  In addition, studies will be conducted to 
identify clusters of potential competitive advant age and separately to conduct a comprehensive 
administrative barriers (cost of business) survey .  The establishment of export processing zones will 
provide the foundation for further industrial production. 
47. Awareness overseas of business and investment opportunities in Sierra Leone is to be 
heightened by increasing capacity in foreign mi ssions and embassies, the re-establishment of 
Permanent Trade Missions and Trade Attaches and by promotional campaigns. 
48. PSD opportunities will increase as constraints to  business are removed.  The Government of 
Sierra Leone is committed to improving the effect iveness, stability and efficiency of the financial 
sector, streamlining bureaucratic procedures for bus iness registration, and reviewing and improving 
the legal and regulatory framework. The fiscal incentive framework will be rationalised, including, 
lowering of import duty rates, elimination of export duties and introduction of a duty suspension scheme for exports, and a reduced corporate tax rate. 
3.2. Investment Promotion Act  
49. A principal step in enabling a supportive environment for private sector development is the 
implementation of the Investment Promotion Act 2004.  The Investment Promotion Act provides the 
legal, economic and financial frame work for investment and will provide incentives for investors who 
contribute to the realisation of the major objectiv es of the country’s national development plans and 
programmes. Sierra Leone provides an attractiv e place for investment with protections and 
guarantees, and has rich human and material resource potential.   WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 18 
 
 
50. The design for investment in Sierra Leone is to  foster an investor friendly country with the 
unhindered transfer of capital and avoidance of a ny policy of nationalisation or expropriation.  The 
government intends to reduce dependence on aid and concentrate instead on trade and investment.  
This will result in sustainable economic growth , technology transfer, increase in value-added 
productivity and an enhancement of entrepre neurship through private sector initiatives. 
51. The government’s role is to improve the exis ting business conditions of entrepreneurs whilst 
attracting new investors.  The Government of Sie rra Leone will continue to support these efforts and 
take steps to address issues of growth, competition,  private sector development, public service reform, 
capacity building, infrastructure development, pove rty reduction, good governance, primary health 
care and sanitation problems, education and food self-sufficiency. 
52. Sierra Leone provides great opportunities fo r export and investment under the following: 
• United States African Growth and Opportuni ty Act (AGOA), which accords market access 
and duty free concessions for a number of products; 
• The Everything but Arms (EBA) Initiative under the Cotonou Agreement with the European 
Union; 
• New Partnership for African Development (NEPAD), as well as other economic groupings 
such as ECOWAS and the MRU. 
53. The Investment Promotion Act encourages domes tic and foreign investors to invest in any 
legitimate form of business.  The Act streamlines th e incentive system and the tax code is rationalized 
to include lower duty rates on import of raw material s and capital goods. There is  provision of a more 
generous depreciation schedule; the introduction of a duty-suspension system for import of raw 
materials for value-added exports ; the elimination of export tax es for exports; and reductions in 
corporate tax. 
54. Under the Act a government entity, the Sierra  Leone Export Development and Investment 
Corporation (SLEDIC), will opera te as a “One-Stop Shop” to, inter alia : facilitate the registration of 
business enterprises, assist investors in obtaining permits, licenses, certificates or clearances, provide 
information to potential investors on matters relati ng to investment and assist potential investors in 
identifying joint venture partners in Sierra Leone.  SLEDIC has the responsibility of facilitating 
investments and receipt of requests from persons seeking assistance to invest in the country.  
55. The Act ensures that  the remittance of profits, af ter taxes, earned by a foreign investor from a 
business enterprise, is guaranteed in line with  current  international practice. E xpatriate personnel with 
work permits are permitted to make remitta nces abroad through their commercial banks9.  The 
Investment Act guarantees against expropriation or nationalisation in a direct or indirect manner10. No 
export licence is required for the export of lo cally produced goods except gold and diamonds. 
4. Sierra Leone and the World Trade Organisation   
56. Sierra Leone was an original GATT contracting party, and became a member of the WTO in 
July 1995 at the conclusion of the Uruguay Round, and the entry into force of the WTO Agreements on 1
st January 1995.  
                                                      
9 Subject to such withholding tax obligations as contained in the In come Tax Act 2000, if applicable. 
10 Except in special cases specified by Section 21 of the Constitution. Prompt and adequate compensation would 
be paid in the event of any expropriation or nationalisation.  Sierra Leone WT/TPR/G/143/Rev.1 
 Page 19 
 
 
57. Sierra Leone’s participation in  the multilateral trading system has always been constrained by 
her available technical and financial resources. Th e country’s nearest mission responsible for WTO 
matters is in Brussels, which also covers the re lationship with the European Union. The mission is 
small and its limited human resources are fully stre tched by the heavy workload of the EU and WTO 
activities. However, since the Singapore Ministeria l Conference in 1996, Sierra Leone has done its 
best to participate in each WTO Ministerial Confer ence, with the assistance of development partners. 
Sierra Leone’s effective particip ation in the day to day activities of the WTO, however, remains a 
challenge.  
58. Nevertheless, Sierra Leone is  strongly committed to a multilateral trading system which is 
fair, rules-based and which achieve s a balance between the rights and obligations of all its members. 
The government of Sierra Leone participated in the General Council meeting of 27-31 July 2004, and 
joined the consensus on the General Council D ecision of 1st August 2004 on the Doha Work 
Programme.  
59. Sierra Leone has recently become the subject of a technical review under the process of the 
Integrated Framework (IF), which will determine the country’s eligibility to join other countries in the 
IF. The government of Sierra Leone considers that our participation in  the IF programme will enhance 
our domestic efforts at mainstreaming trade more effectively into our development process. It will 
further assist Sierra Leone in its endeavor to integr ate itself better into the multilateral trading system.  
4.1 Implementation of WTO Agreements  
60. The problems with representation and particip ation in Geneva are also mirrored at the 
domestic level in implementation of the agreemen ts, including notification and other compliance 
requirements. After a decade of civil conflict, Sie rra Leone’s institutions are considerably weakened, 
and lack the capacity to appropriately implemen t the WTO Agreements, in a manner which supports 
Sierra Leone’s development aspir ations. In addition, many of the WTO Agreements, such as the 
TRIPs Agreement and the Customs Valuation Agreement,  in addition to the legislative reforms, imply 
substantial administrative and procedural changes,  which cause considerable  financial burdens to 
small least developed countries lik e Sierra Leone. Moreover, th e ramifications of the single 
undertaking were not immediately realized by the government at the time Sierra Leone joined the 
WTO.  
61. In Sierra Leone, government institutions, the private sector and the general public are 
unaware of the nature of the multilateral tradi ng system and the role of trade in economic 
development. This lack of unders tanding by and large explains why action has been limited with 
regards to implementation of WTO agreements.  
62. As a least developed country (LDC), Sierra Leone benefits from a range of differential 
treatment in its implementation of WTO ag reements. However, the deadlines for LDC 
implementation of several agreements are fast approaching, and we must implement our WTO 
obligations in full, while using the full range of sp ecial treatment available to us. We currently need 
assistance for the adaptation of existing legisla tion to implement a number of key agreements 
including Customs Valuation, TRIPs, GATS, TBT/ SPS. Further technical assistance is needed to 
ensure that administrative, judicial and othe r processes are reformed and enhanced to support 
implementation. 
63. Sierra Leone therefore calls on our developm ent partners to renew their commitment to 
technical cooperation through the provision of adeq uate and appropriate level of resources in the 
regular budget of the WTO and other core agenci es within their respective mandates. We further WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 20 
 
 
underscore the need for improved coordination in th e delivery of technical assistance as a necessary 
feature to facilitate our effective participation in  the WTO. Sierra Leone is already taking its own 
steps to comply with the WTO Agreements, such as establishing a National Enquiry Point, making 
our first notifications under the TBT Agreement, and starting a process of legislative reform. Our 
National Coordinating Committee on Trade now estab lished, will need strengthening as it continues 
its work.  
4.2 Sierra Leone’s Position regarding the Doha Round of Negotiations  
64. Sierra Leone joined other WTO Members in reaching consensus on General Council Decision 
of 1st August 2004 on the Doha Work Programme. Si erra Leone re-affirms its commitment to the 
Doha round, and urges all WTO Members to respect the timetable for reviews, negotiations and other 
tasks agreed upon in the Decision.  
65.  It is our view that the outcomes from the Doha Development Round should meet the 
objectives set out in the preamble to the Marrakech  Agreement. This means that all WTO Members 
should rise to the challenge of ensuring that issues  of development are central to the negotiations. 
Meeting this challenge will serve to strengthen th e multilateral trading system, enhance its legitimacy 
and create a sustainable basis for economic grow th from which all WTO Members may benefit.  
Sierra Leone welcomes the flexibility already evid ent in the framework modalities, but would urge 
further flexibility to accommodate constraints f aced by developing countries in the multilateral 
trading system. 
66. The justification for special and differential treat ment to Sierra Leone remains valid in so far 
as these provisions are designed to assist our countr y, other small economies and LDCs to overcome 
inherent handicaps which prevent them from deriving meaningful benefits from their participation in 
the multilateral trading system. In this regard, it is  welcome that special and differential treatment 
features in the mandated negotiations, with a view to making such provisions more binding and effective. 
67. The Government of Sierra Leone believes that  future agreements, rules and disciplines 
negotiated among WTO members should be designed to level the playing field by enhancing 
predictability, consistency and transparency in  the multilateral trading system. Such provisions 
should, inter alia :  
• be supportive measures for building our prod uctive capacities and strengthening our supply 
capacities; 
• provide flexibility in the use of appropriate policy instruments to enhance the process of 
growth and structural transformation of our economies; 
• improve market access for products of export interest to Sierra Leone; 
• advance our regional integration objectives; 
• define more precisely the terms and conditi ons of special and differential treatment 
68. Sierra Leone underscores the vital role of the agricultural and service sectors to its economic 
growth and development. The development of the agri cultural sector in Sierra Leone is crucial to our 
trade growth, employment creation, social coh esion and environmental protection. Sierra Leone 
therefore views with interest the provisions for the reform and liberalization of international 
agricultural trade, which must lead to improve d access to world markets for all our agricultural 
exports (primary and processed). This should be achieved through: 
• the elimination of tariff escalation and tariff peaks; Sierra Leone WT/TPR/G/143/Rev.1 
 Page 21 
 
 
• reduction in domestic support and elimination of export subsid ies by developed countries 
which displace agricultural exports by developi ng countries or impact negatively on their 
domestic production; and  
• the tightening of disciplines on export credits  
69. The Government of Sierra Leone recognizes th e importance of addressing the vital issues of 
food security, and the development of rural economies, inter alia , taking into account inherent 
constraints of diversification fo r developing countries. The partic ular circumstances of post-conflict 
countries like Sierra Leone should be given due a ttention and accommodated in  the negotiations on 
agriculture. Sierra Leone remains deeply concerne d at the marginalization of LDCs in the world 
economy. The Government of Sierra Leone theref ore views with satisfaction the provision on 
agriculture in the General Council Decision of 1 August 2004 for developed countries to extend 
bound, duty free and quota free treatment to all pro ducts of export interest originating from LDCs.  
70. Progressive liberalization of trade in services should respect both the existing principles in the 
General Agreement on Trade in Services (GATS) and the flexibility provided to developing countries 
under Article XIX of GATS, including the principle of granting credit for autonomous liberalization 
undertaken since previous negotiations, as provided fo r in the Article. Moreover, Article IV of GATS 
should be strengthened and ma de fully operational.  
4.3. Notifications  
71. Severe lack of technical capacity has hamp ered Sierra Leone’s ability to participate 
effectively in the WTO and fulfil her obligations un der the Agreements. This has been particularly 
apparent in the area of notifications; since she jo ined the WTO in 1995, Sierra Leone has not notified 
any trade measures or instruments to the organization.  With the assistance to the Ministry of Trade 
that will gradually build the country’s capacity to en gage in the WTO, this position will change in the 
near future. The first notification to the WTO t ook place in mid-November 2004, with a notification 
under the TBT Agreement of administrative arrangem ents for standard setting. Moreover, Sierra 
Leone’s 2004 request to the WTO for technical assi stance includes the preparation and submission of 
notifications. 
4.4. Needs Assessment on Trade Policy Framework 
72. As a post-conflict recovery country, Sierra Le one understandably needs a range of technical 
and financial resources to enable it to comply with  its obligations under the WTO. In particular, the 
country needs assistance for, inter alia : 
• preparation of notification submissions  in compliance with WTO Agreements; 
• a move from the Brussels definition of value to  compliance with the WTO Customs Valuation 
Agreement; 
• training for customs officers on valuation of goods and pre-shipment inspection; 
• training of standards officers on laboratory testing and certification; 
• development of trade related laws; 
• training of policy makers on WTO agre ements and in negotiation techniques; 
• establishment of permanent mission in Geneva to enable effective participation in the 
multilateral trading system.  WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 22 
 
 
5. Future Direction of Trade Policies 
73. Sierra Leone’s Vision 2025 centres on the main  goals of establishing a strong economy and 
the nurturing of private enterprise through innovation.  
74. In consolidating the liberalization of tr ade and the development of socio-economic 
infrastructure to support that trade, the quest for fa irness and efficiency remains. To this end, the 
regulatory aspects are the main fo cus, with the development of a comprehensive trade policy, 
including a competition policy and sectoral regulations.  
75. To further enhance policy coordination and tran sparency, in addition to the inter-institutional 
policy structures currently in place, a consultativ e mechanism between the private and public sectors 
is being established. Tariff rates and non-tariff ba rriers as scheduled in regional integration will 
continue to be honoured. The comprehensive tr ade policy framework w ill establish objectives and 
implementation guidelines in respect of an appropriate  trade regime and the direction of trade policy.  Sierra Leone WT/TPR/G/143/Rev.1 
 Page 23 
 
 
Appendix A: Security and Peace Building 
The Sierra Leone Police (SLP) force consists of mo re than 6,500 police officers (July 2003) deployed 
throughout the country. The police are supported by the Commonwealth Safety and Security Project and the United Nations Mission in Sierra Leone (UNAMSIL) Civil Police Unit. The International 
Military and Advisory Training Team (IMATT) works together with Republic of Sierra Leone Armed 
Forces (RSLAF) to create effective and democratically accountable Armed Forces.  
The UNAMSIL mandate is to ensure overall security th roughout the country.  It currently comprises 
11,649 uniformed personnel (31 Ma rch 2004). It also has 255 Military Observers (MilObs) and 120 
civilian police (CivPol) and 319 international and 527 local civilian personnel. The current 
“drawdown” of UNAMSIL force, depending on the pr ogressive strengthening of the security sector in 
the country, envisages the retention of 5,000 peacekeepers by year end.  In cooperation with the Sierra 
Leone Police and the Republic of  Sierra Leone Armed Forces, a programme for the gradual, 
deliberate transfer of the primary responsibility for security in Sierra Leone to the national security 
forces has been initiated, with a first hand-over cer emony held for the Northern region in Makeni on 
22 April 2004, and security of the Western Ar ea was handed over to the local forces on 23
rd  
September 2004.  
The improved political and security environment, combined with the Disarmament, Demobilisation 
and Reintegration (DDR) Programme, has resulted in  the disarmament of 72,490 combatants from all 
factions (including 6,845 Children), the demobiliz ation of 71,043 ex-combatants (including 6,845 
children) and by January 31 2004 a total of 51 ,122 ex-combatants had been reintegrated and 
supported through a number of projects such as vocational/apprenticeships, formal education, 
agriculture and job placements. The NCDDR is no w “no longer aware of any illegal armed groups 
posing a threat to the State of Sierra Leone”. 
The Truth and Reconciliation Commission (TRC)  was established in 2000 for the purpose of11: 
 
• Creating an impartial historical record of  violations and abuses of human rights and 
international humanitarian law related to  the armed conflict in Sierra Leone; 
• Addressing impunity; respond to the needs of the victims; 
• Promoting healing and reconciliation; and  
• Preventing a repetition of the violations and abuses suffered. 
Parallel to the TRC, the Special Court of Sierra Leone was established.  On 16th January 2002 the 
Special Court for Sierra Leone was set up jointly by  the Government of Sierra Leone and the United 
Nations12. It is mandated to try those who bear the gr eatest responsibility for serious violations of 
international humanitarian law and Sierra Leonean law committed in the territory of Sierra Leone 
since 30 November 1996. As of February 2004, el even persons associated with all three of the 
country's former warring factions stand indicted by the Special Court.  
 
                                                      
11 The Truth and Reconciliation Commission Act 2000.  Th is was a provision under the Lomé Agreement, article 
XXVI, which states “1. A Truth and Reconc iliation Commission shall be established to address impunity, break the cycle of 
violence, provide a forum for both the victims and perpetrators  of human rights violations to  tell their story, get a clear 
picture of the past in order to facilitate genuine healing and reconciliation.” 
12 Following UN Resolution 1315 (2000) of 14 August 2000 
 WT/TPR/G/143/Rev.1 Trade Policy Review 
Page 24 
 
 
References 
 
Bank of Sierra Leone (2003), “ Monthly Economic Review ”, Volume 5, Issues 8-12, August to 
December. 
 
Bank of Sierra Leone (2003), “BSL Bulletin, January-June 2003”, Volume IX, Number 11.  
 Food and Agriculture Organisation and the Ministry  of Agriculture, Forestry and Food Security 
(2003), “2002 Crop Survey Report”, March 
 
Government of Sierra Leone (2004), “ Draft PRSP ”, September 
 Government of Sierra Leone, (2003), “National Recovery Strategy Assessment – Final Report” , 
December.  
Government of Sierra Leone (2003), “ Sierra Leone Vision 2025: “Sweet-Salone ”, National Long 
Term Perspective Studies (NLTPS), August.  Government of Sierra Leone (2002), “National Recovery Strategy 2002-2003” , November 
 
Government of Sierra Leone (2001), “ Interim Poverty Reduction Strategy Paper ”, July. 
 Ministry of Finance (2004a), “ Economic Bulletin” , Volume 9, Number 4, March. 
 Ministry of Finance (2004b), “ Government Budget and Statement of  Economic and Financial Policies 
for the Financial Year, 2005 ”, 10
th December. 
 
Ministry of Finance (2003), “ Government Budget and Statement of Economic and Financial Policies 
for the Financial Year, 2004 ”, 28th November. 
 Ministry of Trade and Industry (2004), “ Private Sector Development Po licy and Strategy Framework 
for Poverty Reduction – Making the Private Sector Work ”, First Draft April. 
 National Commission for Privatisation (2003), “ Strategic Plan for the Divestu re of Public Enterprises 
– Implementation Programme 2003-2006 ”, September. 
 
National Committee for Disar mament, Demobilisation and Reintegration (2004), “Executive 
Secretariat Report 1998 – 2004” , February. 
 National Recovery Committee (2003), “ Agriculture Datapack –District Recovery Committees 2
nd 
Data Collection Exercise ”, Data processing by Sierra Leone  Information Services, October. 
 
Poverty Alleviation Strategy Coordinating Office (2004), “ PRSP Pillar II Matrix – Draft ”, May. 
 West African Monetary Institute (2003), “ Programmes for Macroeconomic Convergence in the West 
African Monetary Zone 2003-2005 ”, April. 
 
 
__________